The announcement today by the Government of the introduction
of legislation for the Consumer Data Right is an important step to making the
Open Banking reforms a reality for Australian bank customers.
Open Banking will allow customers, at their request, to share
their personal information with accredited institutions, including
other banks, to allow them to find a better deal on their banking
products. The Open Banking regime will begin next year for the four major
banks, with other Australian banks to join the system in February 2021.
Executive Director of Policy for the Australian Banking
Association Christine Cupitt said the legislation was a critical step to ensure
the reforms moved forward and ensured that the system was safe and
secure for Australians to use when launched next year.
“Open Banking will be a win for customers, increasing
competition and making it easier to get the best deal possible from their
bank,” Ms Cupitt said.
“Giving customers greater access to their data will make it
easier and simpler to shop around for a better deal on a credit card, followed
by home loans and other banking products.
“Thorough testing of this regime is vitally important to
the success of this reform and to ensure Australians trust and use it.
“Passing this legislation is an important step to
setting up a safe and secure system,” she said.